Penn State has fired head coach James Franklin after 12 seasons, the university announced Sunday, marking the end of an era that began with promise and ended amid frustration and mounting losses. Associate head coach Terry Smith will serve as the Nittany Lions’ interim head coach for the remainder of the season, the school confirmed. No other staff changes are expected, according to a source who spoke with ESPN’s Heather Dinich.
Franklin’s departure comes with a staggering financial cost — a buyout exceeding $49 million, the second-largest in college football history, behind only Jimbo Fisher’s $76 million payout from Texas A&M in 2023.
Less than a year after leading Penn State to its first-ever College Football Playoff semifinal appearance, Franklin’s program unraveled quickly in 2025. The breaking point appeared to come two weeks ago in Los Angeles, where Penn State suffered a shocking loss to previously winless UCLA — a team that hadn’t even held a lead all season.
The frustration reached a fever pitch at Beaver Stadium on Saturday. The Nittany Lions blew another game — this time a 22-21 home defeat to Northwestern, their second straight loss at home and third overall. As the Wildcats celebrated, “Fire Franklin!” chants echoed through Happy Valley.
According to ESPN Research, Penn State became the first team since the 1978 FBS-FCS split to lose consecutive games while being favored by 20 or more points in both.
The latest loss was emblematic of Penn State’s struggles. The Nittany Lions committed six first-half penalties for 71 yards against Northwestern and could never recover from their own mistakes. The night turned disastrous when quarterback Drew Allar suffered a season-ending injury in the fourth quarter.
Saturday’s defeat was the culmination of a prolonged trend of underachievement in big games. Dating back to the start of the season, Franklin had posted a 4-21 record against AP Top-10 opponents during his tenure at Penn State — including 1-18 against Top-10 Big Ten teams. His .160 winning percentage versus Top-10 foes ranks among the worst by any coach (minimum 25 games) in the AP Poll era, which began in 1936.
Franklin, 53, was hired in 2014 following Bill O’Brien’s departure to the NFL and took over a program still reeling from the aftermath of the Jerry Sandusky scandal and NCAA sanctions.
Known for his relentless energy, recruiting prowess, and positivity, Franklin rejuvenated the program’s national profile. He produced a steady stream of NFL stars — including Saquon Barkley, Micah Parsons, and Jahan Dotson — and guided Penn State to the 2016 Big Ten Championship, reestablishing the Nittany Lions as a perennial Top-25 team.
Yet for all the success, Franklin’s teams consistently fell short of elite status. Despite a series of top-10 finishes and bowl appearances, the Nittany Lions never broke through to win a national championship — or even reach the College Football Playoff final.
This season began with optimism after a soft nonconference slate and a top-10 ranking, but Penn State’s hopes of returning to championship contention crumbled under the weight of inconsistent play and stunning losses.
Athletic director Pat Kraft acknowledged the difficulty of the decision, saying the university owes Franklin an “enormous amount of gratitude” for restoring Penn State’s national relevance but that it was “time for a change.”
The timing is financially significant. Penn State’s athletic department is already committed to a $700 million renovation project for Beaver Stadium, set to be completed by 2027. Meanwhile, Franklin’s 10-year contract, signed in 2021 by former AD Sandy Barbour, includes up to $85 million in total compensation.
Under the terms of the deal, the university will continue to pay Franklin’s $500,000 base salary, $6.5 million in supplemental pay, and a $1 million annual insurance loan through 2031.
It’s a steep price, but one Penn State appears willing to pay to reset the program and find a coach capable of completing the climb Franklin could not — returning the Nittany Lions to the summit of college football and delivering their first national championship since 1986.
